I've never seen that photo before either.
Grayson Perry can dress however he likes, no issue with that obviously. However the addition of a solid protruding phallus object, particularly coupled with the cartoonish make-up is unsettling.
I think my objection is that if encountering him like that I am exposed to it without consent - almost like being flashed at, if that makes sense?
The fear being, my lack of consent, self-suppression of my response, and socially pressured accommodation of his fetish, is a power play on his part. He is using people who encounter him like that to fuel his gratification.